Buying a vehicle is one of the biggest purchases you’ll make. It’s exciting. It can be stressful. But it can be a good stress if you’re armed with heaps of car-buying knowledge.
The process at a dealership is straightforward, as they’ll steer you through all the steps before you drive off the lot. Buying from a private seller while securing financing just requires a bit more planning and preparation, and this guide will get you there.
Set your budget
Take a thorough look at your budget and check out SELCO’s Auto Loan Calculator to determine how much vehicle you can realistically afford. SELCO’s Loan Officers ask prospective borrowers for a comfortable payment range, and depending on that figure, it may allow for some wiggle room for adding GAP or Extended Warranty coverage. Your financial institution, including SELCO, may require a down payment out of pocket (typically 10%).
Secure a loan
Unless you’ll be paying cash for a car, your next step will be to secure financing. Here’s how to get a loan through SELCO:
- Apply for the loan. Check out our rates and apply for loan preapproval on our website. (Allow up to 48 hours for a decision.) You can also apply via phone or in a branch.
- Get preapproved. While you’re waiting to hear back about your application, call the SELCO Loan Center at 800-445-4483, and our virtual phone assistant, Liv, will get you to a Loan Officer to hash out the amount you’ll qualify for and which term (SELCO offers up to 96 months of financing) will work best for you.
Get serious about buying a car
You’ll want to look for vehicles within the price range that you’re preapproved for with a reasonable number of miles and in good shape. There are plenty of listings online, and maybe there’s a car down the street that catches your eye. Before you commit to anything, you’ll want to:
- Take the car for a spin. Even if the vehicle you’re eyeing is out of state, be sure to take it for a test drive. Online pictures and details likely won’t reveal mechanical problems, ripped upholstery, rusted exterior, odors, etc.
- Negotiate a price. A SELCO Loan Officer can quickly look up the blue-book value of the car you’re considering and email you a printable PDF. You can use this quoted value to potentially negotiate with the seller.
- Have the car inspected. Take the car to a mechanic—preferably one of your choosing, not the seller’s—to get a pre-purchase car inspection. If the seller is concerned about having an inspection done, proceed with caution.
- Confirm loan details/eligibility. The car passed the inspection, and you’ve agreed on a price. Time to go back to your lender to lock in the details. Once the initial parameters are set, to seal the deal you’ll choose the due date for your monthly payments (and when you’d like them to begin). SELCO can set up automatic payments for you.
- Get insured. You’ll be required to have insurance for your car, so save a step later by checking insurance rates for the type of vehicle you’re considering. SELCO Insurance Services can help you with this. (The last thing you want is forced insurance from a lender after a period of time.) Even without a vehicle identification number (VIN), an insurance agent can use all your other information to prepare a policy that’s ready to go when you take ownership of the car.
Putting on the finishing touches
Before you can get the keys to your new ride, there will be some paperwork to fill out and a few details to work through.
- Transferring the title and registration. The process to transfer the vehicle’s title to SELCO will depend on whether the seller is “free and clear” or is currently financing. If it’s the former, simply take a picture of the title and email it to your SELCO Loan Officer. If the car is still being financed, email a picture of the seller’s registration to your Loan Officer and have the seller provide a 15-Day Payoff Letter from their lender. To transfer the registration, take a picture of the car’s license plates to show SELCO if the tags are set to expire before the title work is completed.
- Signing and sealing the deal. After completing all the steps above, you can sign SELCO documents electronically, either in person or remotely. Currently, the Oregon DMV still requires wet signatures. SELCO will often email the DMV docs for the member to print, sign, and return (or sign at a branch). Here’s the full list of DMV documents that will need to be signed:
- Odometer disclosure or bill of sale
- Title (only if the vehicle is owned free and clear)
- Power of Attorney (POA), which allows SELCO to correct a document not signed properly
- Authorization for Payoff (only if the vehicle is being financed; seller can sign electronically)
Whew. Seems like a lot, doesn’t it? Yeah, it is. But by checking these steps off as you go, you won’t get blindsided by the unexpected, and all that will be left is turning the key in the ignition of your new ride.
